Vetoquinol Universal Registration Document 2019

84   Vetoquinol  Universal Registration Document 2019  Financial report 6 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements assets when they meet the definition of an intangible asset, i.e. a controlled resource with probable future economic benefits to Vetoquinol that is identifiable, either being separable or arising from contractual or other legal rights. In application of paragraph 25 of IAS 38, the first recognition criterion related to the probabi- lity of the intangible asset generating future economic benefits is presumed to be met when research and development work is acquired separately. Accordingly, amounts paid to third parties in the form of an upfront payment or milestone payments for proprietary drugs that have not yet received market authorization are reco- gnized on the asset side of the balance sheet. As soon as market authorization has been granted, these rights are amortized on a straight line basis over the duration of their useful lives. Payments related to research and development agree- ments on access to technology or databases as well as payments related to generic in-licensing are also capi- talized. They are amortized over the useful life of the intangible asset from when the agreement begins to apply. Subcontracting agreements and expenditure under research and development service contracts or pay- ments related to ongoing research and development collaborations, regardless of the outcome, are reco- gnized as expenses throughout the period during which the services are received. 6.5.20.1.2 Other intangible assets Intangible assets are carried at cost on the balance sheet and are systematically amortized over their useful life, except for rights, trademarks and other items compri- sing the Equistro ® range, which have an indefinite useful life; an impairment test is carried out at least once a year to determine whether an impairment charge needs to be recorded. The same amortization periods are used throughout the Group: Categories Method Period Licenses and patents Straight line 5-15 years Software Straight line 3-5 years Products and/or MAs Straight line 10-15 years Other inc. customer relations Straight line 10 years